AUD/JPY building a base to springboard off of 83.00

• The AUD is catching some bids as broad market sentiment swings bullish.
• China has managed to bed down market fears for now, but action must follow on China's verbal resolutions before markets can erupt into full-on risk appetite.

The AUD/JPY pair is trading near 83.25 after the Aussie climbed higher and the Yen receded on risk-hungry market sentiment.

The Aussie was one of the bigger winners in Tuesday's action, and the Yen sunk across the broader market as traders became emboldened by China's positivity-tinged words on Tuesday that saw President Xi Jinping express a willingness to open China's economy and end tariff disputes with healthy negotiation.

The AUD heads into Wednesday's action with a hectic schedule, starting off with Westpac Consumer Confidence at 00:30 GMT,  followed by Chinese inflation data at 01:30 GMT, which is expected to contract slightly with year-on-year figures forecast to come in at 3.2 percent versus the previous printing of 3.7 percent. After that will be a speech from the Reserve Bank of Australia's (RBA) head honcho, Philip Lowe, who will be speaking directly to markets after the central bank's recent rate statement that disappointed markets with its decidedly dovish tone.

Before all of that will be Japanese Machine Orders at 23:50 GMT. The immediate figures are unlikely to drive much action in the Yen, but a miss for the figures, which are already expected to disappoint, could soften the risk-on attitude in early Asia trading. Month-on-month figures for Japanese Machine Orders is expected to contract by -2.5 percent, a large swing from the previous reading of 8.2 percent.

AUD/JPY Levels to watch

With the AUD/JPY heavily reliant on risk to derive its momentum, the recent lift from March's bottom at 80.50 will have to mount resistance at March's high of 84.52, and a bearish correction should run into immediate support from the 34-day EMA currently at 82.75, while a break of that level will see further support from the last swing low at the 82.00 major handle.